, 1887-06-14
SETTLING COFFEE.
A Tremendous Drop in the
Favorite Berry.
A Panic of Wonderful Proper
tons in the Market.
Several Heavy Firms Go Under
in the Scramble.
A Decline In Coffee.

- OSAOOs
NEW YORK, June l3.-The excitement
IN the cOtfee market, which has attended
> decline Ill coffee, reached its highest to-
day, and brokers for bull operators became
panic stricken and rushed to sell wi, huut
regard TO prices. The bulls blame the
Gruner Crossman syndicate for starting
the decline which eliminated in to day J
panic, but the bear syndicate strained
every nerve to check the fall without sue
cess. In fact, syndicate brokers we're the
only buyers at the opening, which was at
seventeen cents per pound, over one cent
below Saturdays close. and although the
rally was caused by the bears supporting
orders, the rumors of trouble and contin
ued selling caused them to stop buying
and join the bulls in unloading the stuff
they had taken earlier.
All through the forenoon q selling was
coupled with the widest scenes ever wit
messed In the exchange, and in all Offices
there were knots of brokers gathered dis
cussing the prospects of recovery. In the
afternoon there was some hope of a rally,
but heavy selling continued and soon the
price fell off in heavy fluctuations until it
reached fifteen cents per pound. This
decline was accompanied by a notice Of
the suspension of three firms, B. G.
Arnold 4 Co., Norton, Weyl & Bevan
and Mackay & Small. Alter the an.
nounccment of these failures an organ
lied effort wa made by prominent houses
like . Donohue, Gruner & Crossman to
sustain the market and they succeeded
causing a rally of about one cent ali
around.
The failure of B. G. Arnold & Co.
attracted most attention, as they are the
most prominent house IN the trade, but ii
was generally anticipated. The senior
member of the firm was caught in 1882
by the collapse of one of the largest deals
ever attempted In coffee and was com
PEELED to suspend for over 81, 900, 900.
he started in business again, however,
and was successful in all his ventures. He
Is credited with being the founder of the
coffee exchange and was at one time It's
president, but on Aug. 10 last he formed
a partnership with his son, and since then
they have done a strictly commission bust
ness. He ascribes his failure to the fact
that his customers were so far away that
it was impossible to reach them in time to
obtain a sufficient margin to meet the
decline. He could make ne statement OF
his liabilities and said he could not say
anything about his chances of resuming.
Outsiders claim the firm has been carry.
ing 500, ITO bags of coffee for Rio de
Janeiro operators, known as the Brazilian
party, aud 1t is estimated hat the liabili
ties will amount to over 81, 900. 900.
The Brazilian party started to buy
coffee after the Gruner. Crossman syndi
cate advanced the price from eight to
eighteen cents per poun | and since then
the Gruner syndicate has been bears on
the market, and are said to have unloaded
their long stuff on the Brazilians. The
extreme decline is from twenty one to
thirty cents two weeks ago, and fifteen
cents to-day, or over six and one quarter
cents per pound.
There was some talk of trouble in bank
ing circles as the result of the panic, but
as the banks only loaned SO per cent OF
the market value on coffee, it is hard to
see how n Of them could have been in
volved. Mackay & Small, one OF the sus
pended firms. are supposed to have liabil-
tiles of 5000. 900. The liabilities of other
firms are small.